Small Business Trucking’s Perspective on Reforming & Funding Federal Transportation ProgramsRyan S. Bowley, Director of Government Affairs | October 28, 2013

Small business truckers = critical to the nation & committed to safety

˃ Trucking is dominated by small businesses:

More than 90% of industry: 20 trucks or less50% of industry: one-truck operations

˃ OOIDA members and their peers are estimated to exclusively haul 40% of all US truck freight.

Approximately 120,000 miles/year on the highway

Major focus on long-haul & specialized moves

˃ OOIDA’s members are professional drivers, and have the safety record to back that up:

25 years of driving experience, on average

Over 2 million miles of safe, accident-free driving

˃ OOIDA is focused on advancing positive highway safety policies that will reduce crashes:

Finally requiring entry-level driver trainingReducing aggressive driving around trucksLaunched “Truckers for Safety” Campaign

OOIDA highway policy principlesThere is a clear federal responsibility to improve interstate commerce and a national highway program provides this important focus.We oppose the diversion of user fees paid by highway users away from highways; further, federal funds should be focused on national priorities.Our existing toll-free Interstate System should remain toll-free; tolls represent significant barriers to safe and efficient freight movement.We adamantly oppose the sale or lease of existing public roads to private sector entities while recognizing that PPPs have a role for specific projects.Fuel taxes remain the best way to fund the Federal highway program; truck-specific fees, tolls, and VMT-taxes are the wrong way forward.

Reforms in MAP-21 that matter to truckersHistoric Program Reforms that Attack Diversion• Increased focus on national priorities, including NHS and

major freight routes.• Elimination of “niche” programs that led to significant

diversion away from road and bridge investments.Improved Project Delivery• Process reforms to reduce permitting timelines while

maintaining environmental protections.Performance Approach & Freight Focus• Drive project-level investment based on needs; lead to

greater accountability, better projects, and better use of funds.

• National freight program leading to local decision-makers having greater focus on freight. MPOs want to talk to truckers now!

Trucking and tolls…Truckers are paid by the mile and generally must pay tolls “out of

pocket” as reimbursement is by far the exception and not the norm.Philadelphia to Chicago 80,000 #, 5-axle tractor trailer:$268.30

Round Trip 2x a Month:

$1,073.20

Annual Cost to the

Trucker:$12,878.40

Truckers are forced to cover these toll costs out of their per-mile rate, and with shippers focused on moving goods for the lowest possible costs, it is very unlikely that they will come close to being fully reimbursed for their

toll costs.

Eat the cost – a difficult step given that truckers see incomes of around $40,000 after fuel, truck payments, insurance, repairs, etc. Tolls cut into that even further.

Opt

ions

for

the

Truc

ker:

Avoid the toll road – this is generally what truckers do. Tolls force them off Interstates, when we should be incentivizing truckers to use Interstates for safety and efficiency purposes.

Options OOIDA urges policymakers to consider˃ Gradual adjustment of fuel tax rates to account for 20

years of inflation˃ Indexing fuel tax rates to one or more variables to

maintain purchasing power˃ Inflation˃ Auto fuel economy˃ Other measures

˃ Convert current cents-per-gallon tax structure to a percentage-based tax based upon the wholesale price of fuel at the terminal

˃ Additional methods such as General Fund support for some programs, energy royalty revenues, and bonding can supplement, but not replace, a user-based system.